India, Nepal, Bangladesh launch first trilateral power flow transaction from Nepal to Bangladesh

Union Minister for Power and Housing and Urban Affairs, Manohar Lal Khattar, jointly inaugurated the first trilateral power flow transaction from Nepal to Bangladesh through a virtual event hosted by Nepal’s Ministry of Energy, Water Resources, and Irrigation on Friday.

Kahattar, along with Md Fouzul Kabir Khan, adviser of Bangladesh’s Ministry of Power, Energy, and Mineral Resources, and Nepali Minister of Energy, Water Resources, and Irrigation Dipak Khadka, inaugurated the power flow transaction, which had been carried out through the Indian grid.

According to a press statement, the power transaction from Nepal to Bangladesh, through the Indian grid, will export up to 40 MW of power.

The transaction was announced earlier in June 2023, during the visit of the former Prime Minister of Nepal, Pushpa Kamal Dahal, to India from May 31 to June 3.

During the visit, both sides had expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which would lead to increased interlinkages between the economies for the mutual benefit of all stakeholders.

Following the inauguration, Union Minister Khattar said that the move would benefits all the three countries in the region.

“The power departments of the three countries have entered into an agreement with each other, Regional Cooperation for Power Purchase Sale and Distribution and Transmission, in which Nepal has signed an agreement with Bangladesh for 40 MW hydro power. The Nepal government has used India’s transmission grid to send its electricity to Bangladesh… I think this will benefit all three countries,” Khattar said.

A tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, the Nepal Electricity Authority, and the Bangladesh Power Development Board was signed back in October this year in Kathmandu.

The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector, the statement added.